4) Use Batch Tracking

Batch tracking is sometimes referred to as lot tracking, and it’s a process for efficiently tracing goods along the distribution chain using batch numbers.

A “batch” refers to a particular set of goods that were produced together and which used the same materials.

Use an automatic batch tracking system in order to enter information about all the products within your batch – keeping that information at your fingertips if you need to access it quickly, as in the case of a product recall.

5) Use an Accurate Reorder Point Formula

A reorder point formula tells you approximately when you should order more stock – when you’ve reached the lowest amount of inventory you can sustain before you need more.

You can stop being a victim to market spikes and slumps by using a proven, mathematical equation to help you consistently order the right amount of stock each month.

6) Carry Safety Stock Inventory

Safety stock inventory is a small, surplus amount of inventory you keep on hand to guard against variability in market demand and lead times.

Without safety stock inventory you could experience:

Loss of revenue

Lost customers

And a loss in market share

What makes safety stock a critical inventory management best practice is that you’ll reap all these benefits by using it:

Protection against unexpected spikes in demand

Prevention of stockouts

Compensation for inaccurate market forecasts

A buffer for longer-than-expected lead times

7) Optimize Your Inventory Turnover Rates

The rate of inventory turnover is a measurement of the number of times your inventory is sold or used in a given time period, usually per year.

By calculating your rate of inventory turnover, you’ll have a better grasp on the market demand for your products, on the amount of obsolete stock you may be carrying, and what steps you need to take to sell or stock more inventory – depending on your turnover rate.

10) Use a Cloud-Based Inventory Management System

Unlike locally-installed applications, Cloud-based inventory management software allows you to pay for the features you need now and seamlessly upgrade when you need to in the future.

You’ll pay a single, predictable subscription fee for a “package” that best suits your particular feature needs and team size; then, upgrading is just a few clicks away when your business growth justifies a more powerful platform.

On top of stress-free upgrades, cloud software companies work in the background to make sure things continue to run smoothly, and should you need any questions answered or breaks fixed, they’ll have a support team standing by to assist you.

A Bonus Inventory Management Best Practice

Point #10 above is not just a best practice…

It’s the one tool that brings all the other best practices together.

From streamlining your stocktake to optimizing your inventory turnover rates to batch tracking – a cloud-based inventory management software will help you improve every area of your business operations.

At least, that’s what our software will do for your business.

If you’re looking for a robust inventory management solution to upgrade and optimize your inventory processes, you just found it.

How to Bring All the Inventory Management Best Practices Together

DEAR Inventory gives you one central hub for managing your inventory in real-time, from anywhere in the world. Operate multiple warehouses, track purchases and shipments, integrate essential business apps, and connect your ecommerce stores and sales to your inventory reports. We’ll automate the backend so you can focus on growing your business.

About Company

DEAR systems is a software development company established by an international group of financial advisors and software developers. After compiling a comprehensive list of the needs and wishes of business owners and executives across the spectrum of business, we applied our years of experience in creating a comprehensive, understandable, affordable, cloud based inventory system that integrates with industry standard accounting systems.